1 INFLATION PROTECTION -------------------------------------- author B N VENKATARAMAN

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Text of 1 INFLATION PROTECTION -------------------------------------- author B N VENKATARAMAN

  • INFLATION PROTECTION--------------------------------------

    authorB N VENKATARAMAN

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  • INFLATION AND RETURN----------------------------------------There is inflation consistently over the period of years and since 2010 it is of the order of10%

    Whereas if one has capital amount in bank FD or LIC pension one gets return fixed percentage say 9.25%or With tax exemption 10(10)D some 8%

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  • 1980s and before----------------------------------------------IN CASE OF LOAN REPAYMENT TO BANKWE HAD DIMINISHING BALANCEMETHODWHEREIN THE BORROWER HAS TO REPAY EQUAL INSTALMENT OF PRINCIPAL PLUS INTEREST ON DIMINISHING RUN BALANCE

    IN A TYPICAL CASE FOR 20 YRS SCHEME WITH RATE OF 10% interest ONE PAYSRS.15000 IN FIRST YEAR 14500 IN SECOND YEAR AND SO ON AND AT 20TH YEAR PAYS RS.5500 ON

    RS. 1 LAC LOAN

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  • Since 1994 we have EMI----------------------------------------------IN CASE OF LOAN REPAYMENTTO BANKWE HAD EQUATED MONTHLY INSTALMENTMETHODWHEREIN THE BORROWER HAS TO REPAY EQUAL INSTALMENT OF COMBINED (PRINCIPAL REPAYMENT PLUS INTEREST).

    IN A TYPICAL CASE FOR 20 YRS SCHEME WITH RATE OF 10% interest ONE PAYSRS.11745 EVERY YEAR on a loan of Rs.1 LAC

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  • INFLAPRO----------------------------------------------IN CASE OF LOAN REPAYMENT TO BANKBNV PROPOSES I N F L A P R O (inflation protected say @ 10%inflation) METHODWHEREIN THE BORROWER HAS TO REPAY EQUAL INSTALMENT less amount than in EMI in the first year and repays 10% over Previous year repayment in next year and so on Until the end of term.

    IN A TYPICAL CASE FOR 20 YRS SCHEME WITH RATE OF 10% interest ONE PAYSRS.5500 IN FIRST YEAR 6050 IN SECOND YEAR AND SO ON AND AT 20TH YEAR PAYS RS.33637

    ON RS. 1 LAC LOAN

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  • Graph Diminishing BalanceRepayment Vs Year-----------------------------------------Rupees

    Years

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  • TYPICAL Graph (EMI)Repayment Vs Year-----------------------------------------

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  • Typical Graph (INFLAPRO)Repayment Vs Year-----------------------------------------

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  • graph (dimn.bal), EMI & inflapro----------------------------------------------

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  • PURCHASING CAPACITY(DIMN.BALANCE)-------------------------------------------WITH THE RETURN OF RS 15000IN FIRST YEARThe purchasing cap. Is approx 15000and In 20th year with return of 5500the purchasing cap is only Rs. 900 of current price

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  • PURCHASING CAPACITY(EMI)-------------------------------------------WITH THE RETURN OF RS 11745IN FIRST YEARThe purchasing cap. Is approx 11745and In 20th year with return of 11745the purchasing cap is only Rs. 1920 of current price

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  • PURCHASING CAPACITY(INFLAPRO)--------------------------------------------WITH THE RETURN OF RS 5500IN FIRST YEARThe purchasing cap. Is approx 5500and In 20th year with return of 33637the purchasing cap is only Rs. 5500 of current price.The Purchasing capacity never diminishes during the term

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  • Typical chart of inflapro------------------------------------------------------------------------

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  • BNV's WEB SITE-------------------------------------THERE ARE TWO WEB SITE www.bnv.bvraghav.com Dealing inflapro in detail of one optionFor a given set of parameters

    and www.bnvenkat.com Giving chart of inflaproWith 13 options for a given set of parameters

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  • Please visit www.bnvenkat.comAnd click linkChart of inflapro

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  • CONTACT US-------------------------------------Shri. B N VenkataramanD 1/233 sector F, JankipuramLucknow (India) 226 021Phone: 0522-4072761Mobile: 7388270901

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